Integrative Problems and Virtual Organization Strategy Essay

901 WordsApr 9, 20124 Pages
Integrative Problems and Virtual Organization Strategy Finance for Business 370 March 21, 2012 Integrative Problems and Virtual Organization Strategy Team A has been assigned the task of examining expansion methods for the Riordan Manufacturing Company. Team A will perform an evaluation of the strengths, weaknesses/limitations, opportunities, and threats relating to the challenges of going public through an Initial Public Offering. Team A will draw a conclusion concerning the success that the Initial Public Offering process will bring to Riordan Manufacturing Company and how the Initial Public Offering status will allow Riordan Manufacturing Company to maintain their position as leaders in the plastic production industry. Strengths of…show more content…
Huge amounts of personnel hours are expended during this process. When a company goes public it becomes the property of the shareholders and thus is required to report all of their financial records and plans for the future. Opportunities of an Initial Public Offering Riordan Manufacturing as a result of the (IPO) and influx of capital will be able to position itself to pursue other interests through research, development, expansion, and acquisition efforts producing more revenue for the organization. Riordan Manufacturing as a leading provider of medical, consumer, defense, and technical industries would have the opportunity for improved publicity and an increase in product recognition. Riordan Manufacturing Company going public offers an opportunity for the company's founders and venture capitalists to reclaim their early investments, and provides a public valuation of the company that will help Riordan Manufacturing Company facilitate future mergers and acquisitions (Apollo, 2012).. Threats of an Initial Public Offering One disadvantage associated with going public is for a closely held business owner to lose control of the decision-making process within the company. Another disadvantage is the reality of greater accountability of the Security and Exchange Commission (SEC) in regulating the business. Riordan Manufacturing’s private information may become public. Riordan must pay close

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